Wind Farm Destined for New Mexico

Eastern New Mexico will become the site of one of the nation’s largest wind generation facilities next year, the result of an agreement announced by the Public Service Company of New Mexico (PNM), a subsidiary of PNM Resources and FPL Energy LLC, a subsidiary of FPL Group, Inc.

Albuquerque, New Mexico – October 22, 2002 [] Under terms of the agreement, FPL Energy will construct, own and operate the 204 MW facility, located 20 miles northeast of Fort Sumner, in Quay and De Baca counties. PNM will buy all of the power from the facility under a long-term contract. The facility, to be called the New Mexico Wind Energy Center, is expected to begin commercial operation in 2003. It will produce enough electricity to supply 94,000 average-sized New Mexico homes, according to PNM. “The scale of this project will put New Mexico on the map as one of the nation’s leading producers of Renewable Energy,” said PNM Chairman, President and CEO Jeff Sterba. “As renewable technology continues to improve, and costs come down, it is clearer than ever that smart business decisions and environmental stewardship can successfully coexist. PNM is thrilled to play a role in making Renewable Energy an everyday reality in New Mexico.” “Wind offers significant environmental benefits, helps to diversify our energy sources and utilizes an abundant renewable natural resource,” said Michael O’Sullivan, senior vice president of development for FPL Energy “Today’s new technologies now make wind generation more efficient and cost-effective to our customers and their end users.” Sterba said PNM is buying the clean energy for several reasons, including: its environmental benefits for New Mexico; interest within the state in Renewable Energy; prospects for Renewable Energy on the wholesale energy market; and the strength this particular wind contract will bring to PNM’s competitive generation portfolio and its overall fuel mix. Sterba said PNM plans to ask state regulators for approval of a program sometime in 2003 that will allow interested customers to buy wind-generated electricity for a small monthly premium. Any power from the facility not directed toward the residential and business customer subscription program would be sold on the wholesale market, either within New Mexico or outside the state. Construction on the New Mexico Wind Energy Center is expected to begin later this year. Construction on a facility of this size typically takes six to nine months to complete. The wind facility will be composed of 136 separate towers, each 210 feet tall, with turbine blades that measure more than 110 feet in length. PNM – NYSE: PNM FPL Energy – NYSE: FPL


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